Real Estate sales and values are down all around the country. Yawn. Yeah, we all hear that every time we turn on the 24 hour newscasts.
What they don’t talk about is that there should be a bottom to the housing decline; and once we hit the bottom, then the trek up should begin. And news editors leaving the pending recovery out of the story is understandable, since news outlets are obsessed with pain. ’If it bleeds, it leads‘. They are not economists, they are newscasters looking for ratings.
So, here is a bit of good news. First, from Forbes Magazine, they have Georgia listed as the 5th best state for business – up from no. 15 in 2007. Take a look at the article, and you will see the criteria that they used to judge that: economic climate, growth prospects, labor supply and regulatory environment.
And second, from a source that is not quite as mainstream, is a study done by PricewaterhouseCoopers of the projected 150 wealthiest cities in the world by 2020. And of all the cities in the world, Atlanta is projected to be the 18th richest city in the world by that time.
What’s this mean to you and I? It’s more than just bragging rights. It means that if we are going to be here, living and working and raising our families, for the next several years, then we will see the local housing market around Atlanta turn around, and more quickly than a lot of the rest of the country.
The reason is simple: jobs. Where companies are thriving and jobs are being created, the economy thrives and the demand for housing increases. Sounds like pre-bubble talk, doesn’t it?
Not in this case. The housing bubble was inflated so much because there were many unqualified or under-qualified buyers pumping hot air into the market before. As this market turns around Atlanta this time, the credit markets are still back to normal or even a bit over-tightened. Even our FHA loan limits are still high enough for a majority of home owners. So, the growth will be real and sustainable as businesses and entrepreneurs continue to pour through the gates of Hartsfield-Jackson Airport, and drive onto the I285 loop, admiring our skyline for the first time, and calling Atlanta their new home.
Conclusion: buy soon if you can, catching the housing market at the bottom, or real close to it. And, most buyers today are financing the purchase with Atlanta FHA loans.